SRF Limited has acquired Thailand-based Thai Baroda Industries Limited (TBIL) for 1 billion rupees (£11.8 million). According to the Calcutta News, TBIL has an annual production capacity of 12,000 tonnes of dipped nylon tyre cord fabric. Ashish Bharat Ram, managing director SRF Limited, said in an official statement: “Post financial restructuring and takeover of the company management, we are confident that we will able to turn the company in very short time.”
Continental’s Malaysian operation, Continental Sime Tyre Sdn. Bhd. recently introduced the company’s entire 4×4 tyre range to the region. More than 40 sizes from the Conti4x4Contact, Conti4x4SportContact, ContiTrac SUV, ContiCrossContact AT, ContiCrossContact LX, ContiCrossContact UHP were included in the launch. As part of the launch event more than 250 Continental business partners from Malaysia, Australia, the Philippines, Singapore, Taiwan, Thailand and Vietnam tested the tyres in different terrains on the island of Borneo.
Yokohama Rubber and Yokohama Europe have jointly established a company for the development of tyre sales and marketing in South America. The new subsidiary, Yokohama Rubber Latin America Comercio Ltda., was set up in April in Sao Paulo, Brazil, and began operations in May. Approximately 1.1 million Brazil reals (US$600,000 US) have been invested into the company.
The decision to establish a business base in Brazil was prompted by the company’s recent strong tyre sales within this region; tyre sales volume here has grown almost four-fold in the five years to 2007, says Yokohama. The company will place a particular emphasis on promoting its high performance passenger car tyres, and will conduct market research into the possibility of localising the Latin America tyre business.
Motorists in the Asia Pacific region will benefit from the latest Goodyear offering, scheduled for an April 15 release. Called the Assurance, the mid-size passenger car tyre is intended to offer a superior level of grip in wet or dry conditions. Richard Fleming, managing director of Goodyear Asean and Thailand, said Goodyear produced the Assurance as part of its commitment to produce “greater, safer products that revolve around safety and meet key consumer needs.”
Stamford Sport Wheels (SSW) is swiftly emerging as a popular provider of high quality aluminium wheels courtesy of its own manufacturing complex near Bangkok, Thailand. This facility, established in 2004, holds a potential production capacity of over 450,000 wheels per year. Currently more than 30,000 wheels roll off the plant’s twin production line each month, with 80 per cent of these exported to numerous destinations, including Europe.
All factory equipment is fully automated and computerised, with each level of production closely monitored and controlled. Wheels are cast using what SSW calls ‘Tilting Gravity Casting’ technology, complete with automatic robotic feeding, the result of this being less air turbulence during the pouring process to ensure stronger and tougher wheels with reduced porosity and fewer pinholes.
Automechanika Thailand, the leading international trade fair for the automotive parts, components and aftermarket industry in Thailand, opens next week from 6 – 9 March 2008 at the IMPACT Exhibition and Convention Centre, Bangkok. This year’s event will be officiated by Mr. Chakramon Pasukvanich, Permanent Secretary for the Ministry of Industry, Thailand. The presence of national government officials emphasizes the strong support the event has received from a number of organisations throughout Thailand and from around the world, mainly as it is being held in one of the fastest growing regions in the world for the automotive sector.
Over 170 exhibitors from 14 countries and regions have confirmed their participation, including Australia, China, Germany, Hong Kong, India, Italy, Korea, Malaysia, Singapore, Spain, Taiwan, Thailand, Turkey and the USA. A number of the international brands will be showcasing parts & systems, accessories & tuning, repair & maintenance, IT & management and service station & car wash equipment products at the fair.
Stamford Tyres Distributors India Pvt Ltd has launched the Falken ZIEX ZE912 radial across its distribution network in India. Working in partnership with Sumitomo Rubber Industries – the Japanese designer and manufacturer of Falken and Dunlop tyres – Stamford Tyres will market the ZE912 tyre to owners of passenger cars, wagons and mini-vans.
Mr. Wee Kok Wah, President of Stamford Tyres said: “The ZE912 will become the core product of the Falken range that we sell. It sits in the middle (of the Falken range) between its top Ultra-High Performance tyres and its entry-level line. The ZE912 is a high-performance tyre with broad market appeal with sizes that can fit at least 80 per cent of the mid to upper segment passenger cars and MPVs now used on Indian roads. This means if a driver pulls up at one of our dealer outlets, we will have a ZE912 tyre that will be just right for his car.”
A number of global tyre majors are making their presence felt in India’s tyre market, a market valued by the Business Standard financial newspaper at Rs 190 billion (£2.44 billion). Industry experts report that Michelin, Pirelli and Yokohama have the setting up of local production in their sights, and Bridgestone intends to further its presence in India.
The global number one player already holds the largest share in this market’s PCR segment, and it intends to boost this through a capacity increase at its facility in the central state of Madhya Pradesh to 11,000 units a day. At present Bridgestone supplies the TBR market with tyres manufactured in Thailand, however the company intends to invest around £100 million in a greenfield truck and bus tyre facility somewhere in India.
It appears as if chemical manufacturer Lanxess will build a new rubber facility in Singapore. According to a Reuters report, the German company will spend about 400 million euros setting up a butyl rubber facility in the city state.
The facility will primarily service the tyre industry, and Singapore was one of several countries, including Malaysia and Thailand, vying for selection. So far no official comment has been made by Lanxess.
Stamford Tyres Distributors India Pvt Ltd, a wholly owned subsidiary of Stamford Tyres, has launched the new Falken ZIEX ZE912 radial across its distribution network in India. Working in partnership with Falken tyre manufacturer Sumitomo Rubber Industries, Stamford Tyres will market the ZE912 tyre to owners of passenger cars, wagons and mini-vans.
Mr. Wee Kok Wah, president of Stamford Tyres said, “the ZE912 will become the core product of the Falken range that we sell. It sits in the middle between its top ultra-high performance tyres and its entry-level line. The ZE912 is a high-performance tyre with broad market appeal, with sizes that can fit at least 80 per cent of the mid to upper segment passenger cars and MPVs now used on Indian roads. This means if a driver pulls up at one of our dealer outlets, we will have a ZE912 tyre that will be just right for his car.”
Bridgestone’s retail network in Asia has been boosted through the acquisition of operations in Thailand and Malaysia. Bridgestone Holdings (Thailand) Co., Ltd. (BSHT), a joint capital investment between Thai Bridgestone and a local partner, acquired Shell Autoserv (Thailand) Co., Ltd. (SAT) from the Shell Group on February 4. SAT owns 64 “Shell Autoserv” stores in the capital city Bangkok and in other locations throughout the country, an independent network providing car maintenance service including tyre and lubricant sales. In addition to the Thai transaction, Bridgestone also announced an agreement between Bridgestone Tyre Sales (Malaysia) SDN.BHD. (BSTM) and Shell Group for the BTSM acquisition of eight “Shell Autoserv” car maintenance stores in Malaysia.
Industry observers agree that, looking forward to what will happen in 2008, recent developments in the motorcycle market reflect a changing demand in favour of sports touring tyres and modern cruisers. modern cruisers (see opening article for more detailed information on the development of the motorbike sector).
As far as tyres are concerned, this translates into increased call for wider and higher speed rated products. “As a market leader in cruiser cross-ply it is important for us to be up to speed in this segment, Avon motorcyle sales manager, Graham Matcham, told Tyres & Accessories. And that is exactly why Avon used this year’s Motorcycle Trade Expo as the NEC in Birmingham as a platform to launch its new Cobra cruiser tyre.
After having listened long and hard to what their cruiser, custom and touring customers demand from a tyre, Avon came up with a wishlist of tyre characteristics that the company has tried to incorporate in its new Cobra range. The Cobra replaces the popularVenom-R.
Featuring unique snakeskin sidewalls, aggressive tread pattern and low noise emissions, Avon representatives claim the Cobra “silently defeats all roads that stand in its path.” Avon’s development team wanted to improve manoeuvrability at both high and low speeds, dismissing the common belief that wide tyres are unable to corner proficiently. A taxing undertaking for a tyre that can be fitted on some stereotypically cumbersome machines.
In order to achieve their goal, manufacturing techniques first used in Avon’s successful sporty Viper range have been adapted and applied to Cobra. To improve handling in the much wider Cobra sizes, they are formed using A-VBD (Advanced-Variable Density Belt). This construction technology utilises a jointless belt of ultra-strong material. Above the carcass, these strands are wound closely together at the tyre’s centre for increased stability and wear resistance. Towards the tyre’s edges the fibres are then progressively spaced out to allow the tyre to take on a multi-compound effect as the tyre leans.
With a fang mark and coiling indentation appearance, Cobra’s snake-like tread pattern looks commanding. But this aggressive pattern is not just for show. Developed by Avon, Force Following Grooves (FFG) follow the exact direction of forces that are transferred through the tyre. These channels in the tyre’s surface significantly reduce irregular and advanced wear on bikes that carry heavy loads. Each Cobra rear tyre also features the distinctive snake’s head logo on the sidewall.
Stormy weather?
According to Avon motorcyle sales manager, Graham Matcham, 2007 was a very good year, with strong sales performance and the launch of new product, timed to coincide with the development of the sports touring segment. The strategy obviously worked and even competing manufacturers are now describing Avon as “the fastest growing brand in the sports touring segment.” And with the UK sports touring motorbike tyre segment now acounting for upwards of 35 per cent of the market (the largest single segment), this is a good place to be.
Last year Avon aimed to kick to kick up a storm, with the introduction of the its Storm ST touring tyre. But how did it all go, did Avon achieve its objectives? In short yes.
According to European sales figures, Storm sales grew 8 per cent across Europe during 2007. This alone was obviously a successful result, but it is fair to say that UK Storm sales performance blew away the European average, growing 12 per cent last year, 50 per cent ahead of the wider European result.
Avon describes the Storm-ST is its first tyre to include new ‘Reactive Footprint’ (RF) technology. RF technology marries Avon’s unique variable belt density (VBD) carcass with Lifetime Profile Engineering (LPE) and is designed to produce a footprint which changes size and shape, depending on the bike’s lean angle. Avon reports that the result is a contact patch that grows as the bike leans, giving more grip in corners whilst minimising wear rates when travelling in a straight line.
Bridgestone Corporation has announced that its subsidiary in Thailand, Thai Bridgestone Co. Ltd., will boost capacity at its Nong Khae passenger car tyre facility. Daily production capacity will increase 6,000 units by the end of 2010, giving the plant a total daily capacity of 36,500 tyres. The pcr tyres produced at the Nong Khae plant, including UHP products, are sold on the domestic market and are also exported to other parts of Asia, Europe and North America. The increase in capacity will reportedly be mainly used to supply export markets.
Yokohama Rubber has signed a contract with Spain’s IDIADA Automotive Technology SA, permitting the tyremaker to preferentially use the new IDIADA test track, which is scheduled to commence operation in April 2008. The term of the contract is 15 years, from 2008 through 2023. The purpose of entering such an agreement, reports Yokohama, is to achieve better evaluation performance and faster tyre development for European markets; an aim greatly facilitated by the preferential use of a test track that can be used to evaluate tyres even in winter.
The third Rubber & Tire Asia/China Markets conference will discuss how the Indian and Chinese/Asian markets should deal with escalating natural rubber prices, the need to reduce the so-called CO2 shock and other environmental issues. Some of companies represented included Lanxess, Michelin, The Thai Rubber Association, Bekaert, South China/Wanli Tires, Pouchen Corporation, and JK Tires. The conference will be held on 28-29 February in Bangkok, Thailand.
With natural rubber (NR) and synthetic rubber (SR) prices continuing to persist, Thailand remains the top global rubber producer, with India following closely behind. Meanwhile, the tyre industry remains the core application for butyl rubber, consuming 86 per cent of the global supply. It is estimated that by 2010, global annual tyre production will reach 1.7 billion, up from 1.4 billion in 2005. Most of that growth in Asia will come from South China/Wanli Tires and JK Tires have been invited to share their insight on local market developments.
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